The Iowa House has passed a bill that would set more regulations for pharmacy benefit managers — or PBMs. These are companies that serve as middlemen in the prescription drug supply chain and control prices and access.
The new restrictions would prevent PBMs from creating hurdles for patients and pharmacists – like restricting which pharmacies people can go to. It would also prohibit a PBM from reimbursing pharmacies less than the national average cost for the prescription.
Rep. Brett Barker, R-Nevada, voted for the bill and says the proposal will empower patients and help pharmacies keep their doors open.
“PBM driven, overworked and understaffed pharmacies result in burnout staff, risk to public safety and a lower level of care than Iowans deserve. Community pharmacists want to care for their communities, and it's time that they get an even playing field to do just that.”
The bill would require PBMs to reimburse dispensing fees to independent pharmacies, but Rep. Jeff Cooling, D-Cedar Rapids, says customers may end up bearing more of the cost.
“I don't think we should design a system in this state that is going to incentivize going to larger pharmacies and away from our independent pharmacies.”
In a statement after the vote, the Iowa Pharmacy Association called the bill’s passage a “critical step toward protecting Iowa’s local pharmacies.”
The bill passed 75-15 and next heads to the governor’s desk.